MANAGED PRICES Meaning and
Definition
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Managed prices refer to a pricing mechanism or system in which the government or a regulatory authority intervenes in the market to set and control the prices of certain goods or services. The management of prices is typically implemented in order to achieve specific economic or social objectives, such as controlling inflation, ensuring affordability, or promoting fairness in the market.
In a managed price system, the government may use various tools and strategies to influence prices. This can include setting price ceilings, which establish the maximum price that can be charged for a product or service, or price floors, which determine the minimum price that must be paid. Additionally, the government may impose price controls, such as fixing the price of essential commodities or regulating the rates for public utilities.
The purpose of managed prices can vary based on the country and its specific economic goals. For example, in developing countries, managed prices are often used to ensure essential goods are affordable and accessible to the general population. This could include necessities like food, medicine, or utilities. In other cases, managed prices may be implemented to stabilize markets, prevent price gouging, or maintain economic stability during times of crisis.
However, managed prices can also have unintended consequences. Critics argue that government intervention in pricing can distort market forces, discourage innovation and investment, and create inefficiencies in the economy. Furthermore, if managed prices are not properly implemented or monitored, they can potentially lead to shortages, black market activities, and decreased quality or availability of goods and services.
Common Misspellings for MANAGED PRICES
- nanaged prices
- kanaged prices
- janaged prices
- mznaged prices
- msnaged prices
- mwnaged prices
- mqnaged prices
- mabaged prices
- mamaged prices
- majaged prices
- mahaged prices
- manzged prices
- mansged prices
- manwged prices
- manqged prices
- manafed prices
- manaved prices
- manabed prices
- manahed prices
- manayed prices
Etymology of MANAGED PRICES
The term "managed prices" is a combination of two words: "managed" and "prices".
- Managed: The word "managed" is derived from the Old English word "managian", which means "to handle, control, or administer". Its root is from the Latin word "manus", which means "hand". The term "managed" refers to the act of controlling or handling something, often with skill or expertise.
- Prices: The word "prices" originated from the Latin term "pretium", meaning "value" or "worth". It can be traced back to the Proto-Indo-European root "*per-", denoting "to traffic, sell, or redeem". In the context of economics, "prices" refer to the monetary value assigned to goods, services, or commodities.
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